In recent transactions, various entities associated with Joseph Stilwell have sold significant shares of Kingsway Financial Services Inc. (NYSE:KFS), a company with a current market capitalization of $237.7 million. On December 18 and 19, Stilwell Activist Investments, L.P. and Stilwell Activist Fund, L.P. collectively sold a total of 589,000 shares at a consistent price of $8.43 per share, amounting to approximately $4.97 million. The stock now trades at $8.53, slightly above the insider sale price. InvestingPro analysis indicates the stock is trading above its Fair Value.
These sales were executed by Stilwell Activist Investments, which sold 322,584 shares on December 18 and 198,869 shares on December 19. Concurrently, Stilwell Activist Fund sold 42,416 shares on December 18 and 26,131 shares on December 19. Following these transactions, the entities maintain a substantial holding in Kingsway Financial, with shares owned directly and indirectly through various partnerships.
Joseph Stilwell, who is a director and ten percent owner of Kingsway Financial, manages these transactions through Stilwell Value LLC, the general partner of the involved entities. Despite the sales, Stilwell continues to hold a significant interest in the company, with shares owned directly or indirectly through his affiliations.
In other recent news, Kingsway Financial Services Inc. reported a strong third quarter for 2024, highlighted by a near 10% increase in consolidated revenue, reaching $27.1 million, and a 28% rise in adjusted EBITDA to $2.9 million. The company's acquisition of Image Solutions for $19.5 million was a notable development, expected to enhance growth through expanded IT managed services. Despite a rise in claims expense, the Extended Warranty segment saw a 3.4% revenue increase, while the KSX segment experienced a 23% revenue surge, attributed to previous acquisitions.
Kingsway continues to pursue growth through acquisitions, with a strong pipeline and a focus on asset-light business services and vertical market software. The company remains optimistic about future growth, potentially benefiting from interest rate cuts. Cash and equivalents were reported at $6.5 million, with total debt rising to $58.5 million.
These are recent developments that reflect Kingsway's commitment to a growth strategy focused on acquisitions and organic growth, particularly in the SPI business. The company's financial strategy emphasizes using cash flow for debt reduction and funding growth. Despite some operational challenges and the impact of Hurricane Helene on hardware installations for Image Solutions, Kingsway's leadership expressed confidence in the company's direction and pipeline activity.
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